Financial Asset Management Systems, Inc., has been calling and leaving messages threatening legal action over a debt that they purchased for pennies on the dollar. I had been paying off the debt to another collection agency until the first collection agency (MRS Associates) quit sending regular statements and quit allowing me to pay online. Of course, MRS Associates were more than happy to send nasty letters if I was one day late on their imaginary due date. When I notified MRS Associates that I would not tolerate their behavior, they sold the debt again, this time to Financial Asset Management Systems, Inc. I have exercised my right under the FDCPA to request validation of the debt and instructed them to cease and desist until they validate the debt. Instead of honoring my request for validation and cease and desist, they continue to call and try to pressure me into making payment arrangements over the phone. Any payment arrangement would have to be made in writing, provided they do indeed validate the debt. Given that third party debt collectors purchase charge-offs for pennies on the dollar, their only goal is to make a nice commission for their collector.

Lisa Martin Total Credit Recovery

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Date: letter 1 registration #:
Name:
Address:
City/Postal code:

Authorized Individual:
Company:
Address:
City/Postal code:

Reference file(s):

I am in receipt of your “NOTICE” dated ________________regarding an OUTSTANDING DEBT in the amount of_____________. You claim that I have a debt owed to your company. I will accept your letter of alleged debt upon condition of receiving:

1. Proof of indebtness
2. Full disclosure of the alleged debt (a legal requirement in any contract)
3. Full accounting of the alleged debt with complete payment history starting with the original creditor or service provider (general ledger statement)
4. The “original” promissory note (front and back)
5. Proof of Original Bill in exchange for the promissory note.
6. Original proof of purchase of the alleged debt from “original creditor”
7. Proof that a credit card contract, loan, service contract or any other debt instrument is transferable
8. Prove that “creditor”______________ corporate charter authorizes____________ to bring suits in foreclosure of consumer debts. (Front and back)
9. Proof of the ORIGINAL CONTRACT (between your company and me) signed in blue ink.
10. Prove the existence of the “Original Contract” between the “Original Creditor” and myself (front and back)
11. Proof of my authorization to access my “credit report” without my written consent
12. Proof of my authorization from “original creditor” to sell my account
13. Prove that “creditor”_________________ charter is to engage in consumer lending
14. If applicable deny that the purchase of debt by your collection agency or lawyer, in the name of the original make of the debt is committing fraud.
15. If applicable, being a law firm, the copy front and back of the contract for services which creditor__________________ has with your law firm.
16. If applicable, (being a law firm) deny the fact that if you were to lose in court for failure to provide valid evidence, it will be the loss of your law firm and not the original creditor’s loss (and vice versa)
17. Proof of valid license to collect debt in the Province/State of ________________
18. If applicable please explain, why no authentic hand written signature attached to the “letter of debt owing”.

I demand that all of the above conditions be met and presented in Affidavit format sworn under oath or attestation, under penalty of perjury and upon your full commercial liability. Due to the urgency and seriousness of this allegation, I will give you ten (10) days to respond. If I do not receive such a response conforming to the above criteria within ten (10) days of the date of this letter, it will be deemed a tacit agreement by your acquiescence that the debt is null and void and non-existent.

Sincerely and without malice, afterthought, ill will, vexation or frivolity,

Signed:

For:

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Here is the reasoning behind the information you are asking. Although this may be time consuming to read, its rewards are fruitful and worth its weight in gold.

TIP 1: Always ask for original documentation. Why? With the advance in technology anyone can “digitize” your signature on a document and photocopy it.

TIP 2: In the event that you become the defendant in court for a “debt suit” you can deny your photo copied signature that could have been placed their through digitization. Without original signatures, the court has no competent evidence to validate the debt and you can question the authenticity of documentation that may have been forged for you to lose. With your signature in original form you know exactly what documents you have signed.

TIP 3: Ask for front and back of documents in question.Without this the court has nothing to rely on or has competent evidence to validate a debt.

TIP 4: A lawyer must have a license to act as debt collector in his province or state. A lawyer’s mandate is everything other than that of a debt collector. Ask for his debt collector’s license, in or out of court. Ask for originals. Watch them take a step back. Then sue them for extortion! After all one of their functions (as mentioned above) is to “work on both sides of the court”.

TIP 5: In court always ask the question to be repeated. Let the judge know that you want the compound questions asked one at a time

1. Proof of indebtness: If you borrow $4000 from me I can show the court that $4000 came out from my bank account and was given to you to your account etc. I’m $4000 poorer. A bank/creditor cannot verify that because their money in created on a computer by the push of a button. This is known as “digitally created credit”. By asking for proof of indebtness you are saying, “Prove to me that you are poorer. Let me see that the money in question came out from your account”. A creditor cannot validate their claim. There is no debt! The money was created out of thin air. Without this, the court has no competent evidence to validate the debt.

2. Full disclosure of the alleged debt- You are asking for every piece of document including the creditors underwriting policy. Without this document, the court has no competent evidence to validate the debt.

3. Full accounting of the alleged debt: You are asking for the “general ledger” of each and every contract/transaction showing all receipts and disbursements. Creditors/banks possess no general ledger statement verifying the debt. Without this document, the court has no competent evidence to validate the debt.

4. Original promissory note: When you borrow on a note, and the note is satisfied, the debt is discharged. Any loan/credit card must be backed up by a “promise to pay”. Without this document, the court has no competent evidence to validate the debt. Asking for “original documentation” makes it even harder to validate the debt .Where the complaining party can not prove the existence of the note, there is no note. To recover on a promissory note the plaintiff must prove:

A) The existence of the note in question
B) That the party being sued signed the note
C) That the plaintiff is the owner of the note
D) That a certain balance is due and owing on the note

5. Original proof of purchase of alleged debt: As mentioned, collection agencies by “junk debt”. The visa you owed was $6000 of “digitally created credit”. The creditor lost nothing, but in turn sells the debt to Mr. Collection Agency for $200. Mr. Collection agency tries to extort $6000. Not a bad return on investment. Spend $200 and get $6000. By asking for the original purchase of the debt, the collection agency is selling them self short. They just indicated to the court that they purchased a debt to which they had no jurisdiction to collect on in the first place. They are fraudulently extorting money from you. The ball is in your court.

6. Proof that the debt is transferable: If you owe jack $$, you can’t say “Hey Jack, Jill owes me $$. Go get your $$ from Jill. You still have to get your $$ from Jill in order to pay jack. No debt is transferable. You owe who you owe. In this case you owe the “original creditor” not the collection agency. The collection agencies buy junk debt and operate under the influence of “transfer of debt”. Transfer of debt in the commercial world is extortion and extortion is fraud!

7. Proof that the creditor’s “Corporate Charter” is to sue: what you’re saying is “let me see the creditors underwriting policy”. They won’t give it to you. Extortion leads to law suits (court action). If the original creditor has no mandate to sue in court then what the hell is the collection taking you to court for? Extortion (illegal confiscation of funds) and fraud what else! Without this document, the court has no competent evidence to validate the debt.

8. Proof of “Original contract” between you and I (I meaning the collection agency) - If the is verification of original contract between yourself and the collection agency, then there must have been some financial obligation on your part to pay them $$ for a service or a loan/credit card. Since there was no contract with them there is no debt owing to them. Without this document, the court has no competent evidence to validate the debt.

9. Proof of “Original contract” between “Original creditor and myself” - If the is verification of original contract between yourself and the creditor, then there must have been some financial obligation on your part showing all assignments. Without submission of the original debt instrument, the court is without competent evidence that a contract has been breached or which party has standing to bring suit (court action) for breach.

10. Proof of my authorization to access my credit report- Collection Agencies’ like going into people’s credit report. Every time a “hit” is performed on your credit file your credit score (also known as beacon score) drops by 7 points. An entry is placed in the “enquiry column” of your credit file. It will look like this:

Every time you apply for credit an enquiry is placed on the “enquiry list”. This tells other creditors “This guy is going here there and everywhere for credit and can’t get it”. As a result you are denied credit no matter where you go, especially if the “collection agency enquiry” is at the top of the enquiry list, like you see above.

So you can confirm that they accessed your credit file by checking your file yourself to see if they have placed judgments or looking in the “enquiry column”. You can sue them for this because false judgments placed by collection agencies prevent you from getting future credit. This results in financial and emotional loss to you.

Example: You want to buy a home and need a mortgage but cannot get it because there are judgments on there placed on your credit file illegally. This causes significant emotional and financial loss.

11. Proof of my authorization to sell my account- if the account has been sold it simply means that the creditor did not give you full disclosure. If you are obligated to pay them, why are they selling?
your account to a collection agency? The original creditor is in dishonor. This is a breach of their obligation. You can sue the holder of the account. In this case it will be the collection agency.

12. Proof that the creditor charter is to engage in consumer lending- as mentioned all debt by so called creditors is “digitally created credit”, that is money created out of thin air, just by the push of a computer button. If a creditor can lend “real money” it will be outlined in their mandate. Just as they have the right to ask for information when you apply for credit, you as a customer also have the right to ask for full disclosure of information too. Without sufficient documentation, the court has no competent evidence to validate the debt.
Creditors don’t have $$ to lend, therefore they do not have the capacity to enter into a binding contract.

13. The purchase of debt by your collection agency or lawyer, in the name of the original make of the debt is committing fraud. Collection agencies use the creditors name for extortion. Lawyers buy debt and try to make a “quick buck” by acting as a debt collector. The debt is non-transferable from the get go (as mentioned). A lawyer must have a license to act as debt collector in his province or state. A lawyers mandate is everything other than that of a debt collector. Ask for his license, in or out of court. Ask for originals. Watch them take a step back.

14. Being a law firm, the copy front and back of the contract for services which the creditor has with your law firm: Without this document, the court has no competent evidence to determine whether this suit was authorized by the original creditor. Without proof of delegation of authority to act, this count as “prima facie” evidence of fraud.

15. If applicable being a law firm…….and not the original creditor’s loss: As mentioned lawyers also buy debt. Any lawyer who shows “evidence of buying debt” is guilty of misdemeanor.
A lawyer who fabricates documents for the purpose of collecting shall be guilty of a felony!

16. Proof of valid license to collect debt in the province/state of _______. A lawyer has a license to practice law, not to collect debt. Lawyers enter into contract with creditors to collect debt in other states or provinces other than their own. This can win you favor in court. Not only can’t they collect debt, but they also do it outside of their jurisdiction. You can be awarded additional $$ from the courts.

A consumer lawyer

1/23/11

Just a quick perusal and note: Debts are transferable, absent some stipulation in the original agreement. The entire body of "commercial paper" and "negotiable instruments" is founded on the transferability of debt. You should ask for validation of the transfer, and scrutinize it, but if you try to claim that transferability equals extortion, you'll look like a fool, and will diminish your more cogent arguments.

In the Industry

2/15/11

Also, you want to be sure that they purchased the debt. My understanding is that this company only services debt for their clients.

Joel

2/21/11

Fams does not purchase Student loans from the department of education they are assigned the accounts, When a client does not make payment arrangements with DOE they send the accounts to certain agencies these agencies then do what is allowed by law to collect of your debts, Your payments for the student loans are made directly to the Department of Education. So in short pay your bills and quit dodging collectors. When you owe a federal dept pay it.

Not Disclosed

2/25/11

I worked at FAMS a few years ago. It is a horrible company to work for, and treats its employees poorly. Their treatment is reflected towards the customers they call.

Zombie Debt

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AFNI is one of the many growing Zombie Debt collectors. They fish the long dead waters of uncollectable, unresolved, or worse criminally acquired identities. My suggestion, the best option with all unknown callers is to allow the "answering machine" to take your calls. The best way to keep Zombie Debt "dead" is to not acknowledge it's existance. Never take a call from a debt collector if you can, Never respond to any mail, and Never ever speak to any one about your debt with out your right to representation (attorney).